Agenda Item No. 9 Arkansas State University-BeebeCertificate of Proficiency and Technical Certificate in Petroleum Technology

Prepares students for entry-level employment in the oil and gas drilling industry.

Skilled workers are needed in the petroleum industry for the development of the Fayetteville Shale gas producing region.

Agenda Item No. 10 Arkansas State University-BeebeTechnical Certificate in Aerospace Cabin Construction Technology and Certificates of Proficiency in Aerospace Cabinetry, Aerospace Upholstery and Aerospace Composites

Prepares students for employment in the aerospace industry to construct the panels, furniture, and upholstery needed to finish an airplane cabin.

Responds to a need from the aerospace industry to increase the capacity and expand opportunities for employment in Arkansas.

Program funded by U.S. Department of Labor grant.

Agenda Item No. 11 Arkansas Northeastern CollegeTechnical Certificate and Associate of Applied Science in Aviation Maintenance

Prepares students for employment as FAA certified mechanics, technicians, repair inspectors and supervisory personnel.

Responds to need for trained FAA certified employees at Aviation Repair Technologies in Blytheville.

Program funded by grants from American Association of Community College - Wal-Mart Economic Development Initiative, and the U.S. Department of Labor.

Agenda Item No. 12 Arkansas State University-JonesboroMaster of Science in Sport Administration

Prepares students for management and administrative positions in intercollegiate athletics, professional sport organizations, sport facilities and sports media.

Responds to a need from ASUJ students because job advancement in sport administration generally requires completion of the master’s degree.

Agenda Item No. 13University of Arkansas at MonticelloCertificate of Proficiency and Technical Certificate in Correctional Law Enforcement

Responds to a need from the Arkansas Department of Corrections for correctional officers in southeast Arkansas at the Cummins, Varner, Delta Regional, Williams, and the Diagnostic units.

Hiring preference for individuals with corrections enforcement certificate.

Agenda Item No. 14East Arkansas Community CollegeCertificate of Proficiency, Technical Certificate and Associate of Applied Science in Advanced Manufacturing Technology by Distance Technology

Existing program offered by distance technology to provide access for employees of local industries who cannot attend traditional classes.

Students at ADTEC institutions also can enroll in distance technology courses.

Agenda Item No. 15Institutional Certification Advisory Committee

Report and Resolutions

Recognition of ICAC members (resignations)Dr. Jeffrey Olson, President, North Arkansas CollegeDr. Jack Lassiter, Chancellor, University of Arkansas at Monticello

Recommendation for appointment of new ICAC membersDr. Wayne Hatcher, President, Rich Mountain Community CollegeDr. Allen Meadors, President, University of Central ArkansasMs. Connie Nelson, Executive Director, Arkadelphia Chamber of Commerce

Total Number of Program Proposals: 23

ITT Technical Institute• Associate of Applied Science in Computer Drafting and Design• Associate of Applied Science in Computer Electronic Engineering Technology• Associate of Applied Science in Information Technology –

Computer Network Systems• Associate of Applied Science in Information Technology –

Software Applications and Programming• Bachelor of Science in Criminal Justice• Bachelor of Science in Construction Management • Associate of Applied Science in Paralegal Studies

William Woods University• Master of Business Administration • Master of Education in Athletics and Activities Administration

Kaplan University• Bachelor of Science in Health Science• Bachelor of Science in Nutrition Science • Bachelor of Science in Health Information Management• Bachelor of Science in Communication• Bachelor of Science in Criminal Justice• Bachelor of Science in Human Services • Bachelor of Science in Liberal Studies• Bachelor of Science in Paralegal Studies• Master of Science in Higher Education

Strayer University• Bachelor of Science in Criminal Justice• Master of Science in Human Resource Management• Master of Science in Information Systems

University of Phoenix• Bachelor of Arts in English• Bachelor of Science in Environmental Science

Agenda Item No. 16

Letters of Notification

• 99 Program Deletions ASUJ - 26 ASUMH - 10 HSU - 7 NWACC - 4 PCCUA -17 PTC - 6 SACC - 5 SEARK - 4 UAFS - 1 UAM - 9 UAMS - 3 UAPB - 7

• 4 New Certificates (CCCUA, RMCC) • 1 New Degree (UCA)

Agenda Item No. 17

Letters of Intent

• Role and Scope Change Request – 1 doctoral degree University of Arkansas at Pine Bluff

Agenda Item # 18

o UALR Bond Feasibility

$30 million for 25 years @ 4.5%

Auxiliary purposes

Proceeds will be used to construct and equip a housing complex and construct a student recreation and sports complex.

Relevant Information

Relevant Financial Data Projected Net Housing Revenue ………………………....... $3,078,663

Other Auxiliary Profits…………………………………….. 590,000

Total Net Revenue……………………………………………. 3,668,663

Maximum Annual Debt Service ($3,668,663/120%)…….... 3,057,219

Existing Auxiliary Debt Service ………………………….. 1,047,695

Estimated Debt Service for Proposed Bond Issue …….…... 1,986,810

Net Auxiliary Revenue Remaining for Additional Debt Service …………………………………….… $ 22,714

Agenda Item # 19

o SAUM Bond Feasibility

$10.31 million for 30 years @ 4.85%

Auxiliary purposes

Proceeds from this issue will be used to refund the 1999, 2001 and 2003 auxiliary issues, auxiliary construction purposes and other various capital improvements.

Relevant Information

•2008-2009 Actual Net Auxiliary Profits……….….......... $1,150,557 •Maximum Annual Debt Service ($1,150,557/120%)….... 958,798

•Existing Auxiliary Debt Service.......................................... 90,727

•Estimated Debt Service for Proposed Bond Issue………. 639,563

•Auxiliary Revenue Remaining for Additional Debt Service................................................…… $228,508

Relevant Financial Data

Agenda Item # 20

o OZC Bond Feasibility

$3.6 million for 30 years @ 4.8%

Educational & General purposes

Proceeds will be used to refund a previous bond issue and construct an educational facility at the Mtn. View location.

Relevant Information

Relevant Financial Data

Budgeted 2009-10 Net Tuition and Fee Revenue (Net of E&G scholarship expense) ……................................ $ 1,964,000

Maximum Debt Service ($1,964,000 X 25%) ........................ 491,000

Existing Debt Service ............................................................ 29,809

Proposed Debt Service.......................................................... 248,500

Amount Remaining for Additional Debt Service..................... $ 212,691

Agenda Item # 21

o Allocation of $1 million from Mineral Lease funds to ARE-ON

It is recommended that $1.0 million be allocated to the University of Arkansas, Fayetteville for expenses associated with the connection and expansion of ARE-ON to all public universities in the state.

$4,103,726 has been distributed since April of 2007

Distribution of Mineral Lease Funds

Agenda Item # 22

Revised Line-Item Maximum Salary Recommendations

Agenda Item No. 22

During the 2009-11 Personal Service Request process, institutions of higher education were approved for everything they requested including line-item maximum salaries.

As a consequence, many inequities occurred in university line-item maximum salaries.

In accordance with the July 31, 2009 resolution of the AHECB, the ADHE staff has revised the line-item maximum salaries of the universities to eliminate the inequities that have developed among these institutions.

Revised Line-Item Maximum Recommendations for Non-Classified Personnel for 2010-11 Fiscal Year

Recommendations

Line-item maximum salary changes for universities were recommended based on salaries for similar positions at comparable Arkansas institutions.

A standard 2.3 percent (2.3%) increase was applied to the currently authorized salary for positions already appropriately aligned.

Salary recommendations for new positions were based on salaries for similar positions previously established at comparable institutions.

Table ##-C

Maximum Line Item Comparisons

Agenda Item # 23

NAC Revised Higher Education Bond Allocation

Reduce the Allied Health Center project in the amount of $245,000 and apply the funds to the Old Main Building Renovation

Old Main Building Renovation allocation is now $745,000

Proposed Changes to Higher Education Bond Projects for North Arkansas College

Agenda Item #4

Agency Update

• Budget cuts

• New Staff

• New Comparative data

• Remediation

• Lottery

Budget Cuts• Agency: $67,531 -- salary and matching on vacant

positions; Less travel, less paper anything.

• Financial Aid: $956,822 - Will not impact student scholarships (this year).

• Institutions:– 4yr : $12,759,467– 2yr: $ 2,359,836– TC: $723 ,834– Total Institutions $15,843,137

New Staff

• Brinda Berry• Perkins - Federal Program

Manager

• Forest Boles• Financial Aid – Assistant

Coordinator for Student Outreach Services

ADHE Career Opportunities

• Lottery Related:– 2 financial aid (hired)– 1 computer programmer– 1 accountant– 2 research analyst

• Institutional Finance Officer

New Comparative data

State Per Capita Personal Income v. Share of AdultPopulation with Bachelor's Degree or Higher (2007)

$16,000

$18,000

$20,000

$22,000

$24,000

$26,000

$28,000

$30,000

$32,000

$34,000

$36,000

$38,000

15% 20% 25% 30% 35% 40% 45% 50%

Percentage of Adult Population with a Bachelor's Degree or Higher

Per

Cap

ita

Inco

me

Source: U.S. Census Bureau, ACS 2006

DC

TX

NM

FL

NDNC

AL

IN

LA

MIWI

SD

WY

TN

NV

AR

IAOH

ID

SCKY

MS

WV

MOME

AZ

VA

NJ

PA

MD

MT

CT

MA

CO

NE

AK

GAHI

KSOR

DE

IL

RI MN

WA

UT

VT

NHNY

CA

OK

No state with a low proportion of

Bachelor’s degrees has a high per capita

income.

No state with a high proportion of

Bachelor’s degrees has a low per capita

income.

2008= 18.8%

2002= 19.7%

2006 2005 200220072008

30.8% and above

24.4% - 30.7%

17.1% - 24.3%

25.3%

29.6%

27.1%

24.7%

24%

25.1%

21.9%

35.6%25%

23.6%

28.1%

29.1%

31.5%

29.6%

27.1%

25.1%

22%

26.9%

22.2%

30.7%

27.5%

29.9%

24.3%

25.7%

18.8%

26.1%

19.4%

31.9%

20.3%

26.3%

22.9%

24.7%

24.1%

19.7%33.7%

22.9%

25.4%

23.7%

25.8%

17.1%

Percent of Adults With a Bachelor’s or Higher Degree, 2008

27.3%

29.1%

32.1%33.3%38.1%30%

34.4%

27.5%

35.2%

48.2%

35.6%

Source: U.S. Census Bureau, 2008 American Community Survey (Table R1502) 1-Year Estimates

8.6% and above

6.9% - 8.5%

3.0% - 6.8%

6.3%

7%

7.6%

7.6%

9%

7.4%7.8%

7.6%

8.2%

9.5%

9.7%

8.5%

7.4%

10.1%

9.7%

6.8%

6.7%

9.3%

6%

6.5%

12.2%

7.3%

9.7%

8.8%

8.4%

5.6%

6.8%

9%

8.2%

7.8%

8.1%

4.9%

7.4%

8.1%

7.4%

6.7%6.7%

7.5%

8.5%

5.8%

Percent of Adults With An Associate’s Degree, 2008

8%

9.7%

8.7%9.3%7.5%7.6%

6.3%

7.2%

6.2%

3%

7.5%

Source: U.S. Census Bureau, 2008 American Community Survey (Table B15002) 1-Year Estimates

13.9% and above

9.5% - 13.8%

6.3% - 9.4%

8.3%

7%

8.4%

10.8%

9.2% 10.7%

7.9%

10%

9%

9.4%12.7%

7.4%10.1%

8.6%

7.3%

6.6%

7.2%

9.1%

8%

10.1%

9.7%

7.3%

8.6%

10.9%

6.3%

10%

7.7%

8.6%

6.8%

11.2%

6.5%

9.4%

8.7%

7.9%

13.8%

8.1%

8.9%

13.8%

8.5%

6.7%

Percent of Adults With An Advanced Degree, 2008

9.7%

9.9%

13.8%12%16.4%11.3%

12.8%

10.8%

15.4%

26.7%

15.2%

Source: U.S. Census Bureau, 2008 American Community Survey (Table R1503) 1-Year Estimates

7% - 26%

0% - 6%

-32% - -1%

17%

-4%

-8%

-1%

0% 0%

24%

26%

-1%

4%

16%

1%

-1%

-2%

19%

17%

-5%

-2%

6%

18%

-6%

-1%

-3%

16%

1%

5%0%

13%-2%

-10%

-18%

-11%

-25%

-8%

-14%

-10%

-3%

15%

-10%

-8%

Projected Change in the Number of High-School Graduates, 2009-10 to 2019-20

-9%

-6%

-23%-9%-10%-13%

-3%

+6%

-8%

-32%

-11%

Source: Western Interstate Commission for Higher Education, found in The Chronicle of Higher Education, August 28, 2009, Vol. 56 No. 1 Almanac Issue 2009-10

Some College

Non-Degree Holders

14.7% - 18.3%

11.2% - 14.6%

9.6% - 11.1%

Some College – No 4-year Degree

Source: U.S. Census Bureau, 2007 American Community Survey

14.1

Remediation

AN ACT TO REQUIRE CLEAR EXIT STANDARDS FOR ALL REMEDIAL

COURSES TAKEN AT STATE-SUPPORTED INSTITUTIONS OF HIGHER EDUCATION;

TO IMPROVE THE TEACHING TECHNIQUES OF REMEDIAL COURSES;

AND FOR OTHER PURPOSES.

Representatives J. Roebuck, D. Hutchinson, M. Burris, Carnine, Clemmer, Cole, Nickels, Saunders, G. Smith, Stewart, Abernathy

Senators G. Baker, Madison

HB 1990/ Act 971

1. Strengthening the Arkansas Education Pipeline

2. Improving Preparation 3. Decreasing Remediation 4. Accessing Financial Aid5. Increasing Retention and

Graduation6. Enhancing Funding and

Governance 7. Addressing Data Needs8. Supporting Economic Development 9. Issues for Further Study

• 3.2. Mandate that colleges and universities set clear, measurable exit standards for remedial courses, to be reviewed by ADHE, that correlate with the ACT 19 threshold and send results of how students do in meeting these standards to ADHE in a biennial report that should also include student success rates in subsequent courses.

Recommended Action

• The board, in collaboration with state-supported institutions of higher education, shall develop by institution uniform measurable exit standards for remedial courses that are comparable to the ACT or SAT equivalent required for college-level enrollment in credit courses to be implemented no later than the fall semester of 2010.

HB 1990/ Act 971

com·pa·ra·ble:

• able to be likened to another; similar. 

•  of equivalent quality; worthy of comparison

ADHE preference: Nationally normed test that has been correlated to the ACT.

What is a by institution uniform measurable exit standards for remedial courses that are comparable to

the ACT or SAT equivalent required for college-level enrollment in credit courses?

Comparable to the ACT or SAT:

• Nationally-normed test that has a correlation to the ACT (19)– ASSET, Compass, Accuplacer, Nelson-Denny –other

What it is not:

• Local test/assessment that is not comparable to the ACT of 19. – End of course grade determined in a traditional manner. – Just a test with no repercussions

By institution:– Local freedom to select the test/assessment (within the parameters of the law.– How to teach the course

• Uniform measurable exit standards– Used in all equivalent courses at the institution– Measurable – Quantitative– End of course

• The board shall report to the House Committee on Education and the Senate Committee on Education by February 1, 2010 on the progress made in addressing the requirements in subdivision (d)(1) of this section.

Arkansas Universities End of Remediation Assessment

Nat'l exams correlated

to ACT60%

No Response

20%

Local exams

20%

Arkansas Community Colleges End of Remediation Assessment

Undecided32%

No Response5%

Compass/ ASSET

58%

Combination5%

Arkansas_cnty.shp33 - 4950 - 7475 - 93

% Needing Remediation

Unduplicated Remediation Rates by CountyFall 2007

First-time entering (full- and part-time) students seeking an associate or baccalaureate degree.

Remediation RatesRemediation Rates for All First-Time Entering Students, 2008 Fall Term, All Public Institutions

51.3%

4-Year Public Universities 39.1%

2-Year Public Colleges 74.2%

Remediation Rates for First-Time Entering Adult Students (age 25 or older), 2008 Fall Term, All Public Institutions

91.0%

4-Year Public Universities 92.4%

2-Year Public Colleges 90.6%

Cost of Remediation

$53,800,000Equivalent to the combined budget of seven of Arkansas’s community colleges.

2007-08 - $65.7 million with $24 million (36%) of those expenditures subsidized by state general revenues.

Arkansas Public Universities Six-Year Graduation Rates (2001 Cohort)

25.2%

22.3%

28.8%

19.2%

29.5%

58.9%

45.9%

0.0% 70.0%

Reading*

English *

Math *

Math, Reading and English

Any Remediation

Not Remediated

Fall Cohort

A student who has to take remediation graduates at less than half the rate of students who come to college with the requisite skills.

Arkansas Public Community Colleges Three-Year Graduation Rates (2004 Cohort)

10.8%

11.5%

14.1%8.9%

14.6%

36.7%

21.2%

0.0% 50.0%

Reading*

English *

Math *

Math, Reading and English

Any Remediation

Not Remediated

Fall Cohort

A student who has to take remediation graduates at less than half the rate of students who come to college with the requisite skills.

Lottery

Scholarship Criteria• Encourage certain behavior:

– Reward college preparation: Smart Core, ACT/SAT, good grades

– Encourage enrollment and continued enrollment

– Encourage graduation

– Encourage students near college graduation to finish

– Encourage adults to enter or return to college

• Lawful Resident, Arkansas resident for 1 year• Designed to:

– Be financially pragmatic until lottery revenues are maintained

– Increase Arkansas’s % of adults with postsecondary credentials

– Increase graduation rate

– Increase graduates per year

– Be Fair

• Easy for the student/parent to know about and apply for

• Hard to lose

• Is not so complex that it requires extensive institutional staffing, etc

Principles for Scholarship Administration

Dr. Jim PurcellDirector

ADHE

501-371-2030

jpurcell@adhe.edu

Arkansas Higher Education Arkansas Higher Education Coordinating BoardCoordinating Board

Agenda Item #5Annual Report on Program Deletions

October 30, 2009

Rick Jenkins

Associate Director for Planning and Accountability

Academic Program Deletions

38 4237

0

25

50

75

100

AY2007 AY2008 AY2009

Academic Year

Num

ber

of P

rogr

am D

elet

ions

Program Deletions by Institution Type

28

15

27

10

27

10

0

5

10

15

20

25

30

AY2007 AY2008 AY2009

Academic Year

Pro

gra

m D

ele

tio

ns

4-Year Universities 2-Year Colleges

Program Deletions by Degree Level, 3 Year Totals

17

37

2421

710

10

5

10

15

20

25

30

35

400

1 C

ertifi

cate

of

Pro

fici

ency

02

Te

chn

ica

lC

ert

ifica

te

03

Ass

ocia

teD

eg

ree

05

Ba

cca

lau

rea

teD

eg

ree

06

Po

st-

Ba

cca

lau

rea

teC

ert

ifica

te

07

Ma

ste

r`s

De

gre

e

09

Do

cto

ral

De

gre

e

Degree Level

Pro

gra

m D

elet

ion

s

118 Academic Program Deletions to-date in AY2010 (2009-2010)

• 92 Undergraduate (78%)

• 26 Graduate (22%)

Agenda Item #6

Intercollegiate Athletic Report for 2008-09

Actual Income and Expenditures

Intercollegiate Athletics

• The 2008-09 athletic expenditures were $104.8 million and increase of $4.5 million from 2007-08

• A comparison of 2008-09 actual expenditures to 2008-09 budgeted revenues certified to the Coordinating Board in July 2008 is at the bottom of the summary chart. Certified budgeted revenues for 2008-09 totaled $95,370,564 for all institutions. Total actual expenditures for 2008-09 for all institutions exceeded this certified amount by 10 percent.

Percent of Total Expenditures Expended for Athletics 2008-09

4.10%3.03%

4.77% 4.51%

12.28%

3.15% 3.18%

5.98%7.18%

3.76%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

ASUJ ATU HSU SAUM UAF UAFS UALR UAM UAPB UCA

Average =4.06%

Athletic Revenues by Source 2008-09

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000A

SU

J

UA

LR

UC

A

UA

PB

ATU

HS

U

SA

UM

UA

FS

Prior Fund Balances

E&G Transfers

Other Auxiliary Profits

CWSP

Other Income

Student Athletic Fees

Athletics Generate Income

Athletic Revenues by Source 2008-09

0%

20%

40%

60%

80%

100%

AS

UJ

UA

LR

UC

A

UA

PB

ATU

HS

U

SA

UM

UA

FS

Prior Fund Balances

E&G Transfers

Other Auxiliary Profits

CWSP

Other Income

Student Athletic Fees

Athletics Generate Income

Arkansas Higher Education Financial Condition Report

A Report to the Arkansas Higher Education Coordinating Board

October 30, 2009

Summary• The purchasing power of state funding per

student continues to decline• The real $ funding per FTE student from all

unrestricted E&G sources is less than it was a decade ago

• E&G facilities deferred maintenance is $1.9 billion which includes $190 million in needs that are critical

• E&G and Auxiliary operating margins are in general very small

• Fund balances at most institutions are below the recommended levels

• Inequities in funding are becoming more extreme

• There are undesirable shifts in expenditures among NACUBO expenditure functions

• Many institutions have held tuition & mandatory fee increases to a minimum for 2009-10

• Arkansas Higher Education is faced with three “MUSTS” prescribed in the Higher Education Subcommittee

• Institutions are experiencing unprecedented enrollment growth for the fall of 2009 (Those alone increase need a minimum of $23 million in new funds for 2009-10)

Declining Purchasing Power of State Funding

Change in Purchasing Power of State Funding per FTE Student

1984-85 to 2008-09

$1,400

$1,500

$1,600

$1,700

$1,800

$1,900

$2,000

$2,100

$2,200

$2,30019

84-8

5

1985

-86

1986

-87

1987

-88

1988

-89

1989

-90

1990

-91

1991

-92

1992

-93

1993

-94

1994

-95

1995

-96

1996

-97

1997

-98

1998

-99

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

$2,207

$1,453

34% decline

per student

$1,322$1,322

Where the Money Came From in FY ’99 and FY ’09

(Unrestricted Educational and General Current Fund Revenue)

University Income per FTE Student by Source1998 to 2008-09

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

1998-99 2008-09 Adjusted

State Funds

Other Local Income

Tuition and Fee Income

$8,924

$12,862

$8,705

$5,215

$5,966

$4,038

A 22.4% loss in purchasing power per FTE

58.4%

46.4%

Two- Year CollegesRevenue per FTE Student by Source1998-99 to 2008-09

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

1998-99 2008-09 Adjusted

State Funds

Other Local

Tuition & Fee$6,424

$7,686

$5,202

$4,680

$4,295

$2,907

A 37.9% loss in the purchasing power per FTE student

72.9%

55.9%

Where the Money Went

(Unrestricted Educational and General Expenditures for 2008-09)

$4,951$3,180

$1,366

$1,386

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Colleges Universities

Other

Scholarships

Physical Plant

Institutional Support

Student Services

Academic Support

Public Service

Research

Instruction

$11,810

$6,957

19.6%

11.7%

Where the money went in FY 2009

Two-Year Expenditures per FTE by Function

$2,741 $3,180

$82$74$499

$586$535$617$1,049

$1,366$656

$849

$105

$234

$21

$50

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

1998-99 2008-09

Other

Scholarships

Physical Plant

Institutional Support

Student Services

Academic Support

Public Service

Instruction

$5,688

$6,957

48.2% 45.7%

Where the money went - Colleges

Fund Balances

University E&G Fund Balances as a Percent of Revenues FY 2006 - FY 2009

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%A

SU

J

AT

U

HS

U

SA

UM

UA

F

UA

FS

UA

LR

UA

M

UA

PB

UC

AAs a

Per

cen

t o

f R

even

ue

2005-062006-07

2007-082008-09

One-Year Change in Expendable Fund BalancesFY 2008 to FY 2009

($10,000,000)

($5,000,000)

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

ASUJ* ATU HSU SAUM UAF** UAFS UALR UAM UAPB UCA

2007-08

2008-09

Expendable Fund Balances should not be interpreted as an indication of an institution's cash funds or that an institution has difficulty in meeting

payroll or accounts payable.

Universities

Colleges E&G Fund balances as a Percent of Revenues FY 2006 - FY 2009

0%

20%

40%

60%

80%

100%

120%

AN

C

AS

UB

AS

UM

H

AS

UN

BR

TC

CC

CU

A

EA

CC

MS

CC

NA

C

NP

CC

NW

AC

C

OTC

OZC

PC

CU

A

PTC

RM

CC

SA

CC

SA

UT

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e 2005-06

2006-07

2007-08

2008-09

One-Year Change in Fund BalancesFY 2008 to FY 2009

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

2007-08

2008-09

Two-Year Colleges

An Inequity

Recommended Minimum $3,000

Estimated Cost $4.8 million

Scholarships

Three Imperatives for Higher Education

Interim Legislative Study of Higher Education

• Three “Musts”:

1. We must make sure state government continues to do its part in funding higher education

2. We must limit the start up of new programs

3. We must ensure a net reduction in costs for students

Recommendations and Observations

• Pursue an amendment to the two-year funding formula that would read as follows:

– The minimum funding per FTE student for a two-year college shall be $3,000/FTE which shall be increased by the annual rate of inflation as measured by the Consumer Price Index (CPI) (when funds are available) until an institution’s funding level per FTE determined by the two-year funding model is reached.

– The further dilution of funding for students by the addition of new Non-Formula entities seeking funding outside the formula must be curbed. ADHE staff recommendation is to place a moratorium on the addition of any Non-Formula entities until such time as the funding formula needs are fully funded.

– The public policy question of whether or not the citizens of Arkansas, specifically the students and their parents, should subsidize the education of non-Arkansas residents who enroll in distance delivered education outside the state of Arkansas should be addressed.

Although the numbers are currently relatively small, these enrollment represent a rapidly increasing portion of enrollment in some institutions which is likely to accelerate. (Many other states have addressed this public policy question over a decade ago.)

What do these programs do to increase the number of Arkansans with degrees?

– Distance Education Funding Policy Recommendation: Distance education whether delivered by online instruction or other multimedia methodologies shall be fundable when delivered to Arkansas residents within or outside Arkansas, or to non-Arkansas residents within Arkansas. Distance education delivered to non-Arkansas resident students outside the state of Arkansas shall not be fundable and the credit hours produced shall not be included in the funding formulas used to determine the funding needs of institutions.

– Other funding issues arise from the enrollment of non-resident students when institutions fail to collect out-of-state tuition from the students. Certainly, the boards of the institutions have the authority to set the tuition for non-resident students. However, it is the responsibility of this board and ADHE to determine whether or not those students should be included in the funding formula.

– At the end of each fiscal year Boards of Trustees of every institution should require their chief financial to report a side-by-side comparison of both the budgeted and actual revenue by source and expenditures by NACUBO function. Budgets tend to reflect hypothetical priorities while actual expenditures represent real priorities

• In order to better understand the financial situation of the institutions, it is recommended that certain essential statistics be reported each fall to this Board. A partial list of measures that would improve understanding of why costs change in higher education are listed below:

– Student credit hours generated per full-time equivalent

faculty member– Student/faculty ratios– Teaching loads per faculty member by course level (Lower

and upper level undergraduate, masters, specialist, first professional, and doctoral)

– Average class size by level– Student/staff ratios for non-instructional staff– Percent of As and Bs grades awarded by each institution

– The required data should include the average and the extremes for student semester credit hours generated, student-faculty ratios, teaching loads, and class size.

Proposed Rules

Arkansas Academic Challenge Scholarship Program

Arkansas Academic Challenge

• Increase participation of direct-from-high-

school students from 3,400 to 9,566 annually

• Increase total participation rate from 8,087

to 27,365

Revised Academic Challenge

Arkansas Academic Challenge Scholarship

• 2 parts – Traditional – Nontraditional

General Eligibility Requirements

• U.S. Citizen or Permanent Resident Alien

• Arkansas Resident

• Eligible Arkansas Institution

• Satisfactory Academic Standing

• Continuing Eligibility Requirements

Academic Challenge Scholarship (Lottery Scholarship)

• Scholarships awarded under the Academic Challenge Part 2 will begin Fall 2010

• NO INCOME REQUIREMENT• Aligned with Smart Core

– No Foreign Language Requirement

• Basic eligibility criteria– Traditional Students

• Accepted for admission at an approved institution of higher education as a full-time student in a program of study that leads to a baccalaureate degree, associate degree, qualified certificate or a nursing school diploma

• Applicant must complete the FAFSA

Academic Challenge Scholarship (Lottery Scholarship)

– Traditional Student requirements (cont.)

Must meet one of the following criteria:• Graduate from an Arkansas public high school, successfully

complete the Smart Core curriculum and achieve a 2.5 high school GPA OR obtain a 19 on the ACT

• (before 2014 -- No Smart Core), Graduate from an Arkansas public high school achieve a 2.5 high school GPA AND obtain a 19 on the ACT OR score proficient on all state-mandated end-of-course assessments

• If student graduates from an Arkansas public high school that is identified as a school in which 20% or more of the students received a letter grade of “B” or higher but did not score proficient or higher on the end-of-course assessment, the student must achieve a 2.5 high school GPA AND obtain a 19 on the ACT OR score proficient on all state-mandated end-of-course assessments

Grade Inflation Clause

Academic Challenge Scholarship (Lottery Scholarship)

– If a student has a disability identified under the Individuals with Disabilities Education Act and graduated from an Arkansas public high school but did not complete the Smart Core because of the applicant’s individualized education program, the student must achieve a 2.5 high school GPA AND obtain a 19 on the ACT OR score proficient on all state-mandated end-of-course assessments

– Graduate from a private, out-of-state high school or home school and achieve a 19 on the ACT

Academic Challenge Scholarship (Lottery Scholarship)

– Nontraditional Students• Accepted for admission at an approved institution of

higher education as a full-time or part-time student in a program of study that leads to a baccalaureate degree, associate degree, qualified certificate or a nursing school diploma

• Applicant must complete the FAFSA

Academic Challenge Scholarship (Lottery Scholarship)

– Nontraditional Students• Must meet one of the following criteria

– Graduate from an Arkansas high school and achieved a 2.5 high school GPA or obtained a 19 on the ACT

– Has completed at least 12 semester credit hours and achieved a 2.5 postsecondary GPA

– Graduated from a private high school, out-of-state high school or home school and achieved a 19 on the ACT

Limited Funds for Nontraditional Students

• Majority of Scholarship funds are targeted to students directly out of high school

• Nontraditional student funding: – Up to $8 Million for 2010-2011 (about 15%

of the projected 53 million of lottery revenue)– In future years, ADHE will recommend more

or less depending on usage of the scholarship and lottery revenue

Arkansas Educational Attainment(2006)

Population 25 years and over 1,847,325 100.00%

Less than 9th grade 136,143 7.37%

9th to 12th grade, no diploma 223,906 12.12%

High school graduate (includes equivalency) 671,500 36.35%

Some college, no degree 378,534 20.49%

Associate's degree 100,619 5.45%

Bachelor's degree 221,233 11.98%

Graduate or professional degree 115,390 6.25%

2006

Nontraditional Student

Interest in Scholarship

More interest than

funds available

378,000 (20%) of Arkansans over age 25 have some

college and no degree

165,000 currently enrolled

undergraduate students

Year 1 Maximum

Funds Authorized$8,000,000

Prioritization of Nontraditional Student Applicant for the Scholarships

• Near-completers• Delayed• Returner• Earn-In

A.C.A. §6-85-204(11) "Nontraditional student" means a student who is not a traditional student;

(17) "Traditional student" means a student who will enter postsecondary education as a full-time first-time freshman within twelve (12) months after graduating from high school and remains continuously enrolled as a full-time student.

Thus, Nontraditional students includes all these subgroups:

Distribution of funds to nontraditional studentsStudent applies for the Arkansas Academic Challenge via the universal application

Indicates they are desiring to attend a CC or University

ReturningDelayed Earn-in

Different buckets of funds

CC students would compete with CC students

University Students would compete with University Students

Delayed: 1/31. Priority given to those not requiring remediation2. ACT/SAT/ Compass or equivalent score3. Financial Need (EFC)

Returning: 1/31. Priority given to those Nearest to Completion 2. Completed or not requiring remediation3. Enrolled/Admitted in workforce critical-needs

program 4. College GPA5. Financial Need (EFC)

Earn-In: 1/31. Priority given to those Nearest to Completion2. At a Univ - a nontrad transfer with AA/AS/AAS 3. Completed or not requiring remediation4. Enrolled/Admitted in workforce critical-needs

program5. College GPA6. Financial Need (EFC)$$$ divided equally among

nontraditional categories

Academic Challenge Scholarship (Lottery Scholarship)

• Renewal Criteria– Recipient who meets continuing eligibility criteria shall

receive a scholarship for one (1) academic year renewable annually until the recipient first:(1) Earns a baccalaureate degree or

(2) Attempts a total of 130 semester hours in eight (8) semesters for a full-time student (if degree requires more than 130 hours the recipient may be approved for additional funding beyond 130 hours)

(3) Attempts a total of 130 semester hours in sixteen (16) semesters for a part-time student (if degree requires more than 130 hours the recipient may be approved for additional funding beyond 130 hours)

Academic Challenge Scholarship (Lottery Scholarship)

• Renewal Criteria (cont.)– Institution shall certify that recipient will be enrolled in

courses that will meet the satisfactory academic progress standards

– A recipient shall be continuously enrolled unless ADHE has approved a leave of absence

– Recipient must maintain a 2.5 GPA– Recipient must complete all remedial courses by the

time the student completes the first thirty (30) semester hours attempted after receiving the scholarship

– Traditional students must complete 27 hours the first year and 30 hours each year thereafter

Academic Challenge Scholarship (Lottery Scholarship)

• Award amounts:– Award amounts will be determined as lottery

revenues are received (early 2010)– Scholarship at a 2-year college will be one-

half (50%) of the scholarship award amounts for 4-year university

– Award amounts will be prorated for part-time students

Academic Challenge Proposed RulesPublic Comment

Arkansas Lottery Commission Legislative Oversight Committee’s Comments:

1. Law: A.C.A. § 6-85-206(1)(A)Rule: Page 8-25 & 8-41, I(B)Comment: Rule omits the law's residency requirement for combined student/parent residency if student is under 18Resolution: Recommend revising rules accordingly

2. Law: A.C.A. § 6-85-208Rule: Page 8-45 thru 8-48, IVComment: This seems to be more complex than necessary and contrary to the legislative intentResolution: The prioritization method was developed to give equal allocation to each “non-traditional” student type. Recommend eliminating the financial need prioritization component.

Academic Challenge Proposed RulesPublic Comment

3. Law: A.C.A. § 6-85-215Rule: Page 8-10, 8-31 & 8-48, IVComment: The law requires – using "shall" – for the student to sign the consent form authorizing the release of information, but gives the student an opportunity to opt out. The rule says the department will request the student to sign the form opting in or opting out and noncompliance only results in a default opt-out.

Resolution:  No change recommended.  ADHE staff interprets the law to require students to sign the consent form to opt-in, not opt-out.  The law states the student “shall complete and sign a consent form authorizing the release of the student’s individual personal information.”  The law further states the student “may opt out of the release of information.”  The language in the law does not require completion of a form to opt-out.

4. Rule: Definitions section; page 8-37 & 8-54

Comment: “Incarceration” should be defined in the rules, with respect to incarceration making a student ineligible for the scholarship.

Resolution: Recommend revising the definition section of the rules to include the following, “Incarceration: Confinement in a jail or prison; imprisonment. Incarceration will result in ineligibility for the Academic Challenge Scholarship.”

5. Rule: Page 8-34 and 8-51, Section E.

Comment: How the Department of Higher Education will determine and enforce the disqualifiers for eligibility such as incarceration and the drug-free pledge should be set out in the rules.

Resolution: Recommend revising the cancellation section of the rules to include “incarceration and/or violation of the drug-free pledge” to the list of reasons that will result in cancellation of the scholarship.

ADHE will investigate any report of a scholarship recipient’s violoation of the drug free pledge. If the report is found to be accurate, the student will lose the scholarship.

Academic Challenge Proposed RulesPublic Comment

Academic Challenge Proposed RulesPublic Comment

6. Rule: Page 8-45, Section IVComment: The students who are currently in college

should be taken out of the “Earn-in” category in the rules for nontraditional students and a new category of “current achievers” created, at least until the “current achievers” complete their degrees.

Resolution: No change recommended. The current “Earn-in” category is the “current achiever” student population by definition.

Academic Challenge Proposed RulesPublic Comment

Legislative Staff member comments:

1. Rule: Page 8-26, I(C)Comment: A student could graduate from summer school in 2009 and be eligible. There is also a chance that a May 2009 graduate could meet the criteria. You might want to change the December 31, 2009 date. Resolution: No change recommended. A.C.A. § 6-85-106 (S)(A)(ii) includes the eligibility requirements for Academic Challenge Part 1. Students that graduated from an Arkansas high school on or before December 31, 2009 are part of Academic Challenge Part 1; therefore, implying that students graduating after December 31, 2009 will be subject to the Academic Challenge Part 2 requirements.

2. Rule: Page 8-30, IVComment: I continue to believe that the first priority when there is a shortfall is the Higher Ed grant fund and it should be stated at all times when appropriate in the rules. Resolution: No change recommended. ADHE is required by law to use Higher Education Grant fund to fund the shortfall. This is an internal budgeting process and not included in the rules.

Academic Challenge Proposed RulesPublic Comment

3. Rule: Page 8-28, IV

Comment: Is there any reason to wait until 2011 to change the provision that states that "the recipient may regain eligibility one (1) time only?"

Resolution: No change recommended. The continued eligibility included in rules is aligned with language in the legislation.

4. Rule: Page 8-25, I (D)

Comment: A.C.A. § 6-85-206 (1)(C) defines part-time student and thereby raises the question of legislative intent for traditional part-time student.

Resolution: No change recommended. Legislation states that traditional student must be full-time in A.C.A. § 6-85-204 (17)

Academic Challenge Proposed RulesPublic Comment

5. Rule: Page 8-53, I (C)Comment: This leaves out part-time students by the statement that "Students who are enrolled less than full-time in the current term have not received scholarship benefits in that term".Resolution: Recommend revising rules accordingly

6. Rule: Page 8-53 thru 8-54, I (E)Comment: You might consider requiring the institution to "exercise due diligence in providing complete, accurate, and timely information" to the Bureau of Legislative Research also.Resolution: No change recommended. This requirement is addressed in the legislation in A.C.A. § 6-85-216 and is not related to the Academic Challenge Scholarship

7. Rule: Page 8-21, 8-38, and 8-55Comment: Change "and" to "an" on line 1 of the definition of an Arkansas as residentResolution: Recommend revising rules accordingly